Fiscal Operations Manual
Section 400: Expenditures
When there is a trade-in of capital equipment, the invoice for the new asset must be processed for the full amount of the asset (including trade-in credit) even though the invoice from the vendor will probably be reduced by the value of the trade-in allowance. In order to pay the correct amount, a credit memo must be created in Banner for the amount of the trade-in allowance. Be sure to process the invoice and credit memo simultaneously (cross-referencing the document numbers in the text field of both). This allows the proper payment to the vendor.
The credit memo for the amount of the trade-in must be recorded/posted to fund 095880 (Asset-Undistributed Income Clearing) and Account Code B5801.
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